How the scheme works
Registration in the scheme is essential
The scheme pays a long service payment to eligible registered workers who have worked in the building and construction industry in NSW during the time of their registration and where this time is recorded in the scheme.
Eligible workers in the building and construction industry in NSW are required to be registered in the scheme by their employers. Contractors may register in the scheme of their own accord. While employers would normally register a worker new to their organisation, eligible workers may register themselves to ensure they obtain the benefits of the scheme if they are not certain that their employer has registered them.
Work on Commonwealth land or a Commonwealth place is not eligible under the scheme.
Time worked in the NSW building and construction industry must be recorded by the scheme
The time worked in the NSW building and construction industry is recorded from notifications supplied by employers at the end of each financial year or when workers leave their jobs. Contractors must supply details of their taxable earnings each financial year through a tax agent and this is used to calculate an equivalent time worked in the NSW building and construction industry.
Workers who carry out eligible building and construction work part-time or casually can record the time they work in the building and construction industry in the scheme. The time worked is determined from notifications supplied by their employers at the end of each financial year or when workers leave their jobs.
Amount of the long service payment
The Scheme pays the equivalent of 8.67 weeks pay for 10 years of recorded service. The amount of payment is based on award rates of pay or the rate of pay under a registered enterprise bargaining agreement. Benefits may be payable for workers with less than 10 years of recorded service in certain cases and are calculated on a pro rata basis.
Employers also benefit from the scheme
Employers of eligible workers who are registered with the scheme who pay a long service benefit to a worker under the NSW Long Service Leave Act 1955 can be paid a claim for part or all of that benefit paid. The claim is calculated for that portion of the benefit paid by the employer where the time spent working in the industry by the worker has been recorded by the Corporation. To obtain this benefit the employer must also be registered with the Corporation as an employer in the NSW building and construction industry.
Workers in the building and construction industry who can register
Only persons doing building and construction work in the building and construction industry in NSW may register with the scheme. The Building and Construction Industry Long Service Payments Act 1986 defines both building and construction work and the building and construction industry.
Work on Commonwealth land, also known as a Commonwealth place is not covered under the scheme. Examples of Commonwealth places in NSW include military bases (Holsworthy Barracks, Williamtown RAAF and Wagga Wagga RAAF), office blocks purchased by the Commonwealth to accommodate employees of Commonwealth Government Departments and Sydney Airport.
Funding of the scheme
The levy is paid by the applicant of the building approval or the person the work is being completed for. A contractor generally pays the levy if building work is done on behalf of the Crown. Differences apply if works are done by a body established by an act of parliament such as a Council. Contact us for more information or read more about the levy.
